Bhutan’s Entrepreneurial Ecosystem Gets a Boost with Jabchor 2.0
Bhutan’s journey toward a vibrant entrepreneurial ecosystem has taken a significant leap forward with the conclusion of Jabchor 2.0, the country’s premier equity financing platform. Designed to connect high-potential Bhutanese entrepreneurs with both local and international investors, Jabchor 2.0 is rapidly becoming a cornerstone for innovation, job creation, and economic diversification in the Himalayan kingdom.
Launched by the Department of Employment and Entrepreneurship (DoEE) under the Ministry of Industry, Commerce and Employment, Jabchor 2.0 builds on the success of earlier initiatives and aims to address a critical gap: access to capital for startups and growth-stage businesses that often lack the collateral required for traditional bank loans. The program’s second edition culminated in a high-profile ceremony celebrating the top 10 emerging businesses, each selected for their innovation, scalability, and readiness for investment.
What is Jabchor 2.0 and Why Does It Matter?
Jabchor 2.0 is an equity financing platform that enables Bhutanese entrepreneurs to raise capital by offering equity stakes in their businesses to investors. Unlike conventional loans, which require collateral and can be difficult for new businesses to secure, equity financing allows investors to become part-owners of a company in exchange for funding. This model not only provides much-needed capital but also brings mentorship, business networks, and compliance guidance to entrepreneurs, helping them scale their ventures sustainably.
The platform is open to businesses at various stages—idea, startup, and growth—with a focus on sectors such as agriculture, manufacturing, IT and IT-enabled services, and green technology. Importantly, Jabchor 2.0 also welcomes foreign direct investment (FDI), reflecting Bhutan’s growing openness to international partnerships and cross-border collaboration.
How the Program Works: From Application to Investment
The Jabchor 2.0 process is structured to ensure that only the most promising and investment-ready businesses make it to the final stage. The journey begins with a national call for applications, after which selected entrepreneurs participate in a rigorous three-day bootcamp. This bootcamp covers essential topics such as business valuation, legal compliance, financial verification, and pitch development. Over the next three weeks, participants receive further grooming and mentorship to refine their business models and investor pitches.
The final stage is a high-stakes pitch day, where entrepreneurs present their ventures to a panel of local and international investors. This year, 15 investors—13 domestic and two international—participated in the final pitching session. Investors who are interested in a business sign Expressions of Interest (EOIs), which then lead to formal negotiations and, if successful, investment deals. The entire process, from EOI to deal closure, is designed to be completed within 90 days, ensuring momentum and accountability for both entrepreneurs and investors.
Who Participated? A Closer Look at the Finalists
The second edition of Jabchor attracted 28 business submissions, from which the top 10 were selected for the final pitch. The cohort included:
- One idea-stage business (not yet licensed but with pilot sales)
- Five revenue-generating startups (licensed and operating for more than one year)
- Four growth-stage ventures (licensed and operating for more than five years)
These businesses represent a cross-section of Bhutan’s emerging innovation landscape, with ventures ranging from digital solutions and sustainable agriculture to essential services and wellness products.
Success Stories: Entrepreneurs and Their Ventures
Among the standout participants was Ugyen Phuntsho, founder of UP Sewage Services. Operating for nearly a decade, his company provides environmentally friendly sewage services across Bhutan. Ugyen highlighted the value of the platform:
“We have been operating for nearly a decade, but new building structures require modern machinery, which I hope investors will support. So far, I have been running this business on loans.”
He also praised the bootcamp training for its practical lessons in attracting investors, auditing, and accounting.
Bishal Dhakal, founder of Light WebX, pitched BillsToTrack.com—a cloud-based SaaS platform that replaces paper receipts with digital versions sent via email or WhatsApp. Bishal’s goal is to integrate the software into hardware, simplifying digital transactions for businesses and customers alike. He shared his experience:
“Through this platform not only did I get investors but also learnt technical aspects of raising funds for my business.”
Other notable ventures included Kingdom Essences Private Limited, which produces essential oils and wellness products from Bhutan’s pristine highlands, and AgroNest Centre, a sustainable integrated farming venture supplying fresh and smoked trout to local hotels and restaurants. Both secured investor interest and plan to expand their operations, with an eye on export markets.
Why Equity Financing? The Bhutanese Context
For many Bhutanese entrepreneurs, access to capital has long been a stumbling block. Traditional bank loans require collateral—something that most startups and early-stage businesses simply do not have. This has stifled innovation and limited the growth of potentially transformative ventures.
Equity financing, as facilitated by Jabchor 2.0, offers a solution. By allowing entrepreneurs to exchange ownership stakes for capital, the platform opens doors that would otherwise remain closed. Investors, in turn, gain access to high-growth, impact-driven sectors and the opportunity to contribute to Bhutan’s economic development and Gross National Happiness.
The platform also provides legal safeguards for both parties, with business incorporation supported by the Corporate Regulatory Authority (CRA) and compliance with the Companies Act of Bhutan. Investors benefit from risk mitigation, pre-screened ventures, and clear exit strategies, including the possibility of listing on the Royal Securities Exchange of Bhutan’s Alternative Investment Market (AIM) Board.
Program Impact: Building a Sustainable Entrepreneurial Ecosystem
Since its inception, Jabchor has catalyzed over Nu 36 million in private investments and supported 19 entrepreneurs, transforming early-stage ideas into market-ready ventures. The program’s impact extends beyond funding, offering:
- Capacity building through bootcamps and mentorship
- Access to local and global investor networks
- Post-investment handholding for up to a year, covering HR, audits, and export strategies
- Support for business incorporation and legal compliance
Jigme Tenzin, director of Innovest (the program’s technical partner), emphasized the flexibility and support available to participants:
“It is up to the entrepreneurs whether to have multiple investors or not. If participants do not get an EoI from investors, they can either opt for crowdfunding or the Small and Medium Enterprises (SME) board through Royal Securities Exchange of Bhutan (RSEBL).”
This approach ensures that even those who do not secure immediate investment have alternative pathways to growth and sustainability.
Institutional Support and Future Plans
Jabchor 2.0 is not a one-off project but part of a broader strategy to institutionalize equity financing in Bhutan. The initiative is supported by an advisory board comprising the DoEE, Royal Monetary Authority (RMA), Royal Securities Exchange of Bhutan (RSEB), Bhutan Chamber of Commerce and Industry (BCCI), Corporate Regulatory Authority (CRA), and Department of Industry (DoI). Funding comes from the Economic Stimulus Programme, with additional support from the Government of India.
Kunzang Lhamu, Director General of the DoEE, outlined the department’s vision:
“Our goal is to institutionalise Jabchor as a national equity financing program, with expanded outreach, structured support, and recurring implementation.”
The program’s design reflects international best practices, with a focus on transparency, investor protection, and long-term sustainability. By fostering a culture of entrepreneurship and innovation, Jabchor 2.0 aims to generate new employment opportunities and drive Bhutan’s economic transformation.
Challenges and Opportunities Ahead
While Jabchor 2.0 has made significant strides, challenges remain. Many Bhutanese entrepreneurs are still unfamiliar with equity financing and the responsibilities that come with taking on investors. There is also a need for greater awareness and education around business valuation, legal compliance, and market expansion strategies.
However, the program’s success stories demonstrate the potential for rapid progress. By providing structured support, mentorship, and access to capital, Jabchor 2.0 is helping to build a new generation of Bhutanese business leaders capable of competing on the regional and global stage.
In Summary
- Jabchor 2.0 is Bhutan’s leading equity financing platform, connecting entrepreneurs with local and international investors.
- The program targets high-potential businesses in sectors like agriculture, manufacturing, IT, and green technology.
- Participants benefit from bootcamps, mentorship, legal support, and post-investment handholding.
- Equity financing offers an alternative to traditional loans, enabling startups to grow without collateral.
- The second edition saw 10 finalists pitch to 15 investors, with multiple Expressions of Interest signed.
- Jabchor 2.0 is part of a broader effort to institutionalize entrepreneurship and innovation in Bhutan, with strong government and stakeholder support.
- Challenges remain, but the platform is catalyzing investment, job creation, and economic diversification in the kingdom.
